Hi,
I have an issue on the same error: "could not calculate numerical derivatives -- discontinuous region with missing values encountered r(430)".
I am trying to estimate the conditional variances and conditional correlations with the MGARCH-DCC model. My data sample is composed by banks' returns with daily frequency.
I run the following commands:
mgarch dcc (banki market =, arch(1) garch(1))
predict var*, variance
predict corr*, correlation
predict res*, residuals
However, the model worked for half of my sample, the other half showed me the same error r(430). I tried to do some basic statistics and the data I have are similar to the ones where the model worked. Do you have any idea?
As solutions I already tried:
1) to increase the lag of ARCH, GARCH , and both.
2) to change the distribution from Gaussian to T-student
3) to increase the interaction such as mgarch dcc (banki market =, arch(1) garch(1)), iterate(500).
It worked for a few banks but I still have some problem with the others. I would like to understand what the problem could be.
Thanks in advance,
AV
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